Double blow for Bridgend with 823 job cuts |
|
|
Published
:
Thu, 30 Jun 2005 16:05
|
LONDON: Japanese electronics giant Sony yesterday dealt a blow to Bridgend’s local economy by announcing the closure of its plant in Bridgend where 400 locals worked and cutting a further 250 jobs at its Pencoed plant. The job losses were blamed on the downturn in demand for traditional TV sets. Consumers across world markets, Sony said, were fast switching over to flat screen TV sets.
Newly appointed chief executive Howard Stringer, a Cardiff-born Welshman was accused of having no care for his townspeople. Shareholders had only this month cleared his appointment. Stringer is among the first ever foreigners to lead a Sony operation.
These 650 job cuts will reduce Sony’s workforce in the UK by one-fifth. The plant in Bridgend produced cathode ray tubes which are used in traditional TV sets. The Pencoed assembly plant employed 550 people. The same two plants had seen 300 jobs cuts at the beginning of this year. The closure of the Bridgend plant would effectively mean the end of production of TV sets in Europe.
Another plant in Bridgend which is due to close down is an Altoids mints factory belonging to Wrigley’s - the chewing gum manufacturer. Wrigley’s clarified that it was closing the plant because it had decided to move production of Altoids sweets to the US. This would result in an additional 173 job losses for Bridgend. These job cuts would take place over the next three to six months.
The mint factory formerly belonged to Kraft Foods. For the workers here, the announcement of job cuts has come as a big shock as when US-based Wrigley’s took over the factory in May 2005, many had expected an expansion. Wrigley’s had acquired the Kraft Foods plant in a £811m deal.
The double blow of around 800 job losses has worked up the trade unions who have demanded urgent talks with the managements of both companies. A union spokesperson said Sony’s job cuts were a result of its decision to stop further investment in new technology for its UK plants.
The workers are doubtful if they will find similar work locally.
The Japanese electronics company had moved here in 1974; in 1992, it opened the Pencoed plant. A few years ago, the two Sony plants employed more than 4000 people. On a visit to the plant the Queen had even praised the firm for its “commendable commitment” to its workers. The first of Sony’s job cuts were announced in Oct 2000.
The company made a statement to the media saying the decision for the job cuts and the closure of the Bridgend plant was made with regret. It admitted to “excellent performance” at the two plants despite which it had to take the decision.
Tony Blair yesterday offered to intervene and “do everything we can to help people in this situation”. Andrew Davies, Welsh economic development minister, said he and with his partners had formed a rapid response team to provide support for those affected by the latest job cuts. He said he would also discuss with EU official and Sony if it was possible to work out a Bridgend regeneration scheme with their assistance.
|
|
|
|
|
|
Print this Story
